Levi Strauss & Co. Appoints New Chief Financial Officer
Levi Strauss & Co. has named John Vandemore as its new Chief Financial Officer, effective from November 1. Vandemore, who has spent nearly a decade in the same role at Skechers, will succeed Harmit Singh, who is retiring. Singh will remain as an adviser to the company until the end of November.
Vandemore’s Background
Before his tenure at Skechers, where he significantly contributed to the brand’s financial growth, Vandemore held senior roles in various major corporations including Mattel, The Walt Disney Company, and International Game Technology. His extensive experience in finance and operations is seen as an asset for Levi’s future plans.
Strategic Growth Alignment
Vandemore’s impact on Skechers’ revenue, which increased from $4 billion in 2017 to $10 billion last year, is notable as Levi’s has a similar financial target. According to analysts from BNP Paribas, his appointment is promising for Levi’s ambition to reach $10 billion in revenue. Levi’s and Skechers share several operational similarities, with both brands boasting similar earnings margins, geographical markets, and sales channels.
Focus on Direct-to-Consumer Sales
Both Skechers and Levi’s are focusing on expanding their direct-to-consumer (DTC) sales. In Levi’s latest quarter, DTC sales comprised just over half of its revenue, increasing by 11%, although wholesale channels also saw growth. However, there are concerns regarding DTC sales, particularly in the U.S. and Europe, which may face challenges such as changing weather conditions.
CEO’s Perspective
Levi’s CEO Michelle Gass has expressed enthusiasm about Vandemore’s appointment, viewing it as timely for the company’s expansion objectives. She highlighted his expertise in helping global brands grow profitably, aligning with Levi’s goals to become a leading denim lifestyle retailer globally and achieve their $10 billion revenue target.
Reporting based on coverage first published by retaildive.com.